Evergrande's liquidation hearing initially scheduled for Monday was adjourned by a Hong Kong court as the property developer's shares hit an all-time low.
ADVERTISEMENTThe Hong Kong High Court has agreed to postpone a hearing to wind up property developer China Evergrande Group to 4 December, with Judge Linda Chan saying the next hearing will be the last before a decision is made on liquidating the company.
With the hearing originally scheduled for Monday, Evergrande now has five more weeks to come up with a "concrete" revised restructuring proposal, Chan said. Otherwise, it is likely the firm will be wound up.
On early Monday, the company's shares fell 20% to an all-time low of HK$0.188 (€0.023), before slightly recovering to HK$0.21.
Evergrande's lawyer told the court the firm plans to "monetise the value" of its two Hong Kong-listed units.
The property developer's plans to rework its agreements with creditors suffered a major blow last month when the firm confirmed that its billionaire founder, Hui Ka Yan, and one of its main subsidiaries were under investigation for suspected criminal activities.
As a result, the company was barred by mainland regulators from issuing new dollar bonds, a crucial part of its restructuring plan.
Evergrande, which has more than €283 billion in liabilities, defaulted on its offshore debt in late 2021 and became the face of a debt crisis that has since engulfed China's property sector.
